Niche marketing is focused on advertising to specific niche markets. In a broad sense, all internet marketing is focused on niche segments. However, true niche marketing is applying an effort to dominate advertising small, obscure niche markets. Individually these markets usually do not yield large returns, but these website generally require minimal maintenance. The objective is to expand into a ever-increasing list of small niche markets, creating passive income with informational-type websites.
Informational websites are the most basic form of niche marketing. The goal is to provide information to web users seeking very specific and obscure information on a certain topic. These websites are then monetized using an Adsense-type model, generating a very small, but consistent amount of revenue. This concept is then scaled out to every identifiable niche possible. This tactic is only really used in non-competitive niches with small volumes.
- Time: The time requirement is medium to high. Research is required to identify possible opportunities. Additional research may be required to gain background knowledge sufficient to develop quality content. Once niches are identified, informational websites need to be created, monetized, and moderately promoted.
- Capital: The capital requirements for niche marketing are low. The only potential costs associated with niche marketing are outsourcing, if applicable.
- Scaling: Niche marketing has great scaling potential. These websites should continue to generate income with minimal attention, as long as care it taken to exploit non-competitive niches.
- Outsourcing: Most of the work associated with niche marketing can be outsourced. The development of the websites and content can be easily handled by virtual assistants. Although the research required to identify opportunities is probably not a good task to outsource.
- ROI: Highly variable. The ROI for niche marketing is generally low and is highly dependent upon numerous factors; the competitiveness of the niche, search volume, advertising payouts within the niche, and time required to develop quality pages.
Niche marketing is a long-term growth strategy. This internet marketing tactics can be used to develop a consistent, diversified revenue stream. However, it requires a large investment of development time and research to properly execute. I feel that niche marketing worthy place within my internet marketing business plan, although given its resource requirements, will be a secondary income generation opportunity. This tactic could potentially be used to keep virtual assistants busy during slow periods.